December 12, 2013
The Canada Pension Plan Investment Board (CPPIB) agreed to acquire the assets of Assiniboia Farmland for C$128 million. Assiniboia’s diversified portfolio consists of 115,000 acres of farmland producing crops including wheat, barley and canola. Western Canada produced its biggest ever wheat and canola crops this year of which Saskatchewan is the largest provincial grower. Last year CPPIB launched its agricultural investment program initially focusing on farmland in Canada, the U.S., Australia, New Zealand, and Brazil. As populations grow and become wealthier in developing countries like China and India dietary changes are placing more demand on grains and oilseeds. Sovereign wealth funds and pension funds are making large plays in physical assets such as farmland to gain long-term, stable, risk-adjusted returns based on the positive outlook for growth based on these increased demands.
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